Talisman moving away from natural gas

Reuters quotes CEO John Manzoni as saying, "I really see no value in chasing unprofitable growth while gas prices remain so low."

Its exploration and production spending is being decreased from $4.5 billion to $4 billion. Spending and production in the the Marcellus area of the northeastern U.S. will be reduced from $1.2 billion to around $600 million with just three rigs running, down from 11 last year.

Natural gas prices are the lowest they've been in a decade during the winter season, less than $3 U.S. per million British Thermal Unit, and several natural gas companies are being forced to make changes. In a previous interview with Moose FM/energeticcity.ca, President and CEO of Petroleum Services Association of Canada Mark Salkeld says bigger players like Talisman will be hit less hard than smaller companies. Natural gas currently sits at $2.551 U.S. per million BTU.